ABN Amro to phase out performance-related bonuses for 17,000 staff

ABN Amro bank is planning to overhaul its current bonus structure for the 17,000 members of staff who are covered by a formal pay and conditions agreement, the Financieele Dagblad said on Thursday.

The paper bases its claim on people involved in the current talks between unions and the bank on a new pay deal (CAO) for 2018. A spokesman for the bank told the paper company surveys showed a large part of the bank’s personnel want to get rid of the ‘performance-related bonus’.

‘We want a complete new structure: no performance assessments and no performance-related bonuses,’ he said.

The plans will cover all members of staff who are paid according to the CAO. Around 100 specialists, including traders and corporate bankers, will still be eligible for a bonus.

The bank’s board do not qualify for bonuses because the Dutch state still owns a majority stake.

Developments

The FD says the bank’s plan is in line with developments elsewhere in the financial services sector. Former finance minister Jeroen Dijsselbloem fought hard against the bonus culture, which he saw as a major cause of the financial crisis and introduced a 20% of salary ceiling.

ING and Rabobank earlier phased out bonuses for staff who fall under the formal pay agreement.

The FD said unions and ABN Amro have agreed on a 9% pay rise for staff to compensate for the end of the bonus system.